Date: 30 October 2009

Thought for the day

“A mind that is stretched by a new experience can never go back to its old dimensions.”

–Oliver Wendell Holmes

GENERAL

1)India is ready to discuss all issues with Pakistan if an atmosphere that is fruitful for negotiations is created, Prime Minister Manmohan Singh said in Srinagar on Thursday. At a press conference, he said there was no precondition for talks, but they cannot make headway unless there was “effective control” of the terror groups operating in that country.

Hindu

ECONOMY

2)The economic recovery in Asia is faster than the rest of the world and is projected to grow by 5.75% during 2010, says the International Monetary Fund(IMF). “The region (Asia) is out pacing other parts of the world, with the “green shoots” of recovery appearing earlier and taking firmer roots than elsewhere,” the IMF said in its regional economic outlook on Thursday.

FE

3)Inflation rose fastest in six months to 1.51% for the week ended October 17 from 1.21% in the previous week. The wholesale price index-based inflation rose despite a high base year inflation rate of 10.82% during the same week last year. Analysts expect it to touch 7% by March 2010.

FE

 CORPORATE / INDUSTRY

 4)RAMKY Enviro Engineers, an arm of the Rs 2,500-crore Ramky group, has acquired Singapore-based Cleantech for Rs 100 crore. The acquisition is expected to help the environmental engineering firm ramp up business in Singapore and South East Asia markets.

ET

MONEY & BANKING

 5)The rupee bounced back from near one-month lows on Thursday, as sentiment was buyoyed by dollar sales from exporters booking pro fits. The rupee closed at 47.21 against dollar, off a low of 47.63 seen in early deals and 0.3% stronger than its previous close of 47.34. The rupee came under pressure earlier on the day owing to the customary month-end dollar demand from refiners.

ET

6)Weighed down by higher provisioning, two public sectors lenders – Bank of India(BoI) and Indian Overseas Bank(IOB) – today posted a drop of over 50 per cent in their net profits for the second quarter ended September 2009. While Punjab National Bank(PNB), Corporation Bank and Vijaya Bank posted a rise in net profit on growth in earnings from interest and fee-income.

BS

7)The Reserve Bank of India(RBI) has approved United Bank of India’s (UBI’s) initial public offering(IPO), which will reduce the government stake in the bank by 16 per cent. The bank would file the offer document for the same by November-end and the issue is likely to hit the market by January, said S C Gupta, chairman and managing director, UBI.

BS

8)THE DBS Group, South East Asia’s largest bank, is set to kick off its retail banking operations in India. However, unlike other foreign banks, which sought to develop their retail base by growing their loan books, DBS will first focus on building its deposits. DBS currently has 10 branches in the country and has applied for more branches.

ET

MARKETS

 9)The BSE Sensex dived 230 points on Thursday as foreign institutional investors continued their selling amid negative global cues and rising inflation concerns. The benchmark index closed at 16,052.70. The broader Nifty closed 1.5 per cent down, at 4,750.55. The Sensex touched an intra-day high of 16,264, but quickly dropped to a low of 15,993.8. FIIs were net sellers on Thursday for Rs 2,546.6 crore, while domestic institutions were net buyers for Rs 977 crore. Retail investors seem to have taken advantage of the situation and bought equity worth Rs 113 crore(on BSE) in the net.

BL

10)In spite of miserable post-listing performance for most initial public offers(IPOs) this year, Thinksoft Global, which got listed on Monday, has surged 120 per cent from its listing price on the Bombay Stock Exchange(BSE). Analysts say the stock has been continously rising since the listing day on the back of extreme speculation.

BS

11)Securities and Exchange Board of India(Sebi) is likely to issue norms on separate stock exchange for small and medium enterprises next month to give them more options to raise funds. At present, around 90% of the 2.61 crore micro, small and medium enterprises depend on either banks or informal sources to finance their business.

FE

IPO / FPO

12)The Centre approved Rural Electrification Corporation’s proposal for a follow-on-public offer(FPO) on Thursday. The issue will constitute 20 per cent of the existing paid-up capital of the company fresh equity of 15 per cent and disinvestment of 5 per cent.

BL

CORPORATE SCORE

 13)Exploration & production major Oil & Natural Gas Corporation’s net profit increased 6% to Rs 5,089.64 crore in the second quarter ended September 30, compared with Rs 4,808.41 crore in the cor- responding period of the previous year. This is ONGC’s first rise in five quarters thanks to an easing of its subsidy-sharing burden.

FE

14)Mahindra & Mahindra(M&M) has posted its highest-ever quarterly profit for the quarter ending September 30,2009. The net profit of the company (standalone) surged 185% to Rs 703 crore compared to Rs 247 crore in the same period last year, beating expectations.

FE

15)Cairn India Ltd has reported a 60 per cent rise in its profit(consolidated) for the second quarter of the current fiscal. This is after two straight quarters of decline. The company reported a profit of Rs 469.5 crore compared with Rs 293.3 crore for the cor- responding quarter of the previous year.

BL

16)Reliance Industries has posted a profit of Rs 3,852 crore for the second quarter ended September 30, a fall of 6.4 per cent from Rs 4,116 crore in the corresponding period last year. For the half- year period, profits were down 8.5 per cent to Rs 7,518 crore(Rs 8,220 crore).

BL

COMMODITIES

 17)Gold prices rose back above $1,030 an ounce in Europe on Thurs- day as the dollar gave up gains against the euro ahead of key US economic growth data due later in the session. Spot gold was bid at $1,034.65 an ounce at 1014 GMT, against $1,026.85 late in New York on Wednesday. Earlier, it touched a three-week low of $1,025.75 an ounce.

BL

BUSINESS PROCESS OUTSOURCING

 18)Since selling its captive technology unit to Wipro Technologies last December, Citigroup has expanded its engagement with the Indian vendor by also offering business process outsourcing contracts.

BL

INFORMATION TECHNOLOGY

19)WITH the US economy, the biggest market for India’s over $50 bil- lion outsourcing industry, showing signs of an economic recovery, top honchos at Infosys, Wipro and HCL said their optimism has proven right. The financial results of the country’s top-three software exporters have already shown signs of recovery earlier this month. India’s software exports industry derives more than half of its revenue from the US.

ET

20)MULTINATIONAL outsourcing firms IBM and HP have been shortlisted for around $700 million contract for managing Microsoft’s global network of desktops, servers and other IT infrastructure, as the world’s biggest software maker seeks to lower its operational costs and focus better on its core business.

ET

21)HCL Infosystems on Thursday said it expects corporate spending on computer systems and other related IT products and services to accelerate early next year as the economy has started showing signs of recovery. The company sees large deals flowing in from the banking & financial services, telecom and power sectors in the system integration space in the next 3-4 months.

ET

INTERNATIONAL

22)THE US economy grew in the third quarter for the first time in more than a year, propelled by stimulus-driven gains in consumer spending and home building. The world’s largest economy expanded at a 3.5% pace from July through September, exceeding the median estimate of economists surveyed by Bloomberg News, after shrinking the previous four quarters, figures from the commerce department showed in Washington on Thursday. Household purchases climbed 3.4%, the most in more than two years.

ET

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KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

Headlines (29-10-2009)

Date: 29 October 2009

Thought for the day

“Four things come not back—the spoken word, the sped arrow, the past life, the neglected opportunity.”

 –William Hazlitt.

GENERAL

1)In a span of two years, the Indian Coast Guard would be the among best in the world as there was a plan to induct more men, machine and material to patrol the 7,500-km shoreline, Defence Minister A K Antony said on Wednesday. Underlining that the concept of security underwent a change after the 26/11 Mumbai terror attacks to include threats from the sea, Mr Antony said that in order to  meet the additional responsibility of coastal surveillance given to the Coast Guard, the government had sanctioned 3,000 additional  personnel to make it a potent force to counter terrorism from sea.

Hindu

ECONOMY

2)India has been named among the top ten Asian countries paying importance towards corporate social responsibility (CSR) dis- closure norms, a survey says. According to social enterprise CSR Asia’s Asian Sustainability Ranking(ASR), India was ranked fourth in the list, which was topped by Australia.

BL

3)Growth in key infrastructure sectors slipped in September after a strong showing in August, which could contribute to a possible moderation in the industrial recovery story. The core infrastructure sector growth dropped to 4 per cent in September, way below the upwardly revised annual growth of 7.8 per cent in August, data released by the Ministry of Commerce and Industry showed on Wednesday.

BL

CORPORATE / INDUSTRY

4)THE world’s largest drug company Pfizer has started the second round of due diligence on Wockhardt’s Biotech business, which could result in a potential buyout or a strategic alliance, a person familiar with the matter said. The Indian company has been selling its assets as part of its plan to come out of a financial crisis.

ET

5)Bharat Heavy Electricals Ltd(Bhel) has bagged a Rs 205-crore export order for a gas turbine generating unit from the Sultanate of Oman. The order envisages supply, supervision and commissioning of 126-mw gas turbine generating unit for a power project being set up by Petroleum Development Oman(PDO) at Qarn Alam, nearly 400 km from Muscat, a statement said.

FE

6)India Cements Ltd will invest $20 million (Rs 92 crore) in a coal mine in Indonesia. The company expects to sign the deal with the mine owner within a couple of weeks.

BL

MONEY & BANKING

7)The rupee fell by 44 paise against the dollar as the greenback rallied against other major currencies overseas. Though the rupee had breached the 47-level in day trade on Tuesday, it closed well above the 47 mark on Wednesday. The domestic currency opened at 47.10 and weakened to touch an intra-day low of 47.37. It ended the day at 47.35, against the previous close of 46.91/92.

BL

8)Bank of Baroda’s net profit grew 60 per cent to Rs 634 crore for the quarter ended September 30,2009, from Rs 395 crore in the same period last year. The rise in profits is on account of growth in both interest income and non-interest income.

BL

9)Andhra Bank has reported a 70% growth in its net profit to Rs  273.97 crore during the quarter ended September 2009 from Rs 161.53 crore recorded in the year-ago period. Operating profit during the period stood at Rs 452.80 crore as against Rs 278.42
 crore.

FE

MARKETS

10)The country’s equity indices, after witnessing intense volatility throughout the trading session, ended the day with minimal losses. The 30-share Sensex of the Bombay Stock Exchange(BSE) lost 69.91 points or 0.43% to close the day at 16,283.49 points. The broader S&P CNX Nifty of the National Stock Exchange(NSE) was down by 20.55 points or 0.42% to close at 4,826.15 points.

FE

11)The Securities Appellate Tribunal(SAT) on Wednesday dismissed an appeal filed by Mr Shankar Sharma against a February 2009 SEBI order that barred him from accessing the securities market for a period of one year.

BL

CORPORATE SCORE

12)ACC, the country’s largest cement maker, has posted a robust  increase of 60 per cent in its net profit, at Rs 415.51 crore for  the quarter ended September 30, compared with Rs 260 crore in  the corresponding previous quarter.

BS

13)An increase in exports – mainly of active pharmaceutical ingredients(API) – and foreign exchange gains have helped Cipla, the domestic drug major, post a jump of 82.1 per cent in its net profit for the July-September quarter. The company posted a net profit of Rs 275.7 crore during the quarter, compared to Rs 151.4 crore posted in the corresponding previous year’s quarter, according to the consolidated results announced by the company today.

BS

COMMODITIES

14)The failure of Kharif crops might lead to a “bullish” situation for the prices of pulses. “My gut feeling is that it will be bullish with regard to pulses, while there is no cause for concern over the overall food situation,” Mr B C Khatua, Chairman of Forward Markets Commission(FMC) said.

BL

15)Gold prices held near $1,035 an ounce in Europe on Wednesday,  little changed from the previous session, as the dollar steadied against the euro after hitting a two-week high earlier this week.

BL

COMMUNICATIONS

 16)THE next two months will see top executives of the world’s largest telecom equipment vendors such as Ericsson, Nokia Siemens Networks (NSN), Alcatel-Lucent, Huawei and ZTE descending on India, with an eye to several billion dollars worth of business deals coming up for grabs in the next six months.

ET

17)Intel, the world’s largest chipmaker, is understood to be in talks with leading Indian telecom companies like Tata Communications(formerly VSNL), Bharti Airtel and Reliance Communications that could bid for broadband wireless access(BWA) spectrum to be auctioned by the government in January 2010.

BS

BUSINESS PROCESS OUTSOURCING

 18)The coming months could see a spate of mergers & acquisitions in the Indian business process outsourcing (BPO) space, with several private equity funds looking at exercising the exit option. Investment banking officials said PE firms generally invest for 5-7 years and then cash out. In some of their current investments, the normal investment cycle is either over or coming to an end. Last year, several funds had to postpone their exit because of the global meltdown. Sources said several PE funds have opened channels with top IT firms, exploring the exit options. Companies that could be interested in buying the stakes could be top-tier IT services firms, like Infosys Technologies or Wipro, who want to strengthen their BPO portfolio. Other PE funds that want to enter or increase their exposure in the Indian BPO space could also be potential buyers.

FE

INFORMATION TECHNOLOGY

19)IF you crack open the Microsoft global management kernel, the DNA will reveal a distinctly Indian trail. Some of the key businesses within Microsoft are being run by talent from India and atleast half-a-dozen of them are part of the top 25 in the 90,000-employee company, the world’s largest software maker.

ET

20)INDIA’S top outsourcing companies are now exploring acquisition opportunities in the Latin American countries, as more customers demand nearshore delivery capabilities for physical proximity and ease of managing an outsourcing relationship.

ET

21)HCL Technologies, ranked among the country’s top five software services firms, on Wednesday reported a 10% decline in its net profit at Rs 320.1 crore for the quarter ended September 30 compared to the year-ago period. Forex losses, which were almost half of the company’s net profit, pulled down HCL Tech’s profitability vis-a-vis its peers like Infosys Technologies, Wipro and TCS, which have reported positive numbers.

FE

INTERNATIONAL

 22)Crude futures fell below $78 a barrel Wednesday after key US inventory data showed a rise in gasoline stocks after analysts had expected a decline. Light, sweet crude for December delivery recently traded $1.70, or 2.1 per cent, lower at $77.85 a barrel on the New York Mercantile Exchange.

BL

23)GLOBAL consumer confidence is rebounding and in the United States has risen for the first time since 2007, amid signs the world economy is picking up although spending is still restrained, a survey showed on Wednesday. Confidence was highest in India, followed by Indonesia and Norway, and was weakest in Japan, Latvia, Portugal and South Korea,  although in Korea it had improved markedly, according to a quarterly survey by The Nielsen Company, conducted between Sept.28 and October 16.

ET

 FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

 Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

Headlines (27-10-2009)

Date: 27 October 2009

Thought for the day

“The great thing in the world is not so much where we stand as in what direction we are moving.”

–Oliver Wendell Holmes

GENERAL

1)After it played host to a SAARC (South Asian Association for Regional Cooperation) meeting 23 years ago, Bangalore has been chosen as the venue for the first meeting outside New Delhi of the Foreign Ministers of India, Russia and China. External Affairs Minister S.M. Krishna will meet Chinese Foreign Minister Yang Jiechi and Russia Foreign Minister Sergei Lavrov to delibrate on regional and international issues during the ninth trilateral meeting to be held at Hotel Leela Palace in Bangalore on Tuesday.

Hindu

ECONOMY

2)India and the US on Monday agreed to work in concert to evolve a framework for promoting real and meaningful cooperation in trade and investment which would address mutual irritants impeding the bilateral economic engagement.

BL

CORPORATE / INDUSTRY

3)Larsen & Toubro Ltd on Monday said that it has sold its 50 per cent stake in Voith Paper Technology India Ltd to its joint venture partner Voith AG of Germany. Voith AG held the balance 50 per cent stake. The sale is effective October 1.

BL

4)Motherson Sumi Systems Ltd(MSSL) announced on Monday that its European subsidiary Samvardhana Motherson Refletec(SMR) has received a Rs 1401.8 crore order for supply of rear-view mirrors to two auto companies. This is apart from SMR’s earlier orders worth Rs 3,503 crore from Volkswagen and BMW that the company had announced in August.

BL

MONEY & BANKING

5)A weak equities market and month-end dollar demand on Monday dragged the rupee down by 14 paise to 46.64/65 against the US dollar. Forex dealers said the rupee fell sharply in tune with sluggish trend in stocks.

BL

6)The government is considering far-reaching reforms in the banking sector, including giving banks the freedom to open branches in Tier-3 and Tier-4 cities, and granting 15 new licences to smaller banks for the first time in almost 11 years.

FE

7)BUOYED by a 163% year-on-year rise in non-interest income(courtesy, treasury operations), Canara Bank reported a net profit of Rs 911 crore for the second quarter (Q2) ended September 30,2009, against Rs 529.43 crore in the comparable period of the previous financial year.

ET

8)A surge in income on investments and interest on income tax refund helped IDBI Bank post a robust 56 per cent increase in second quarter net profit at Rs 254 crore as against Rs 162 crore in the corresponding period last year.

BL

MARKETS

9)Institutional selling in blue chips, mainly banks and real estate stocks, dragged shares lower in a choppy session on Monday even as most regional markets ended higher. The Sensex fell 70.31 points, or 0.4 per cent, to finish at 16,740.50, after trading between 16,706.08 and 16,938.88. “This is just the unwinding of long positions before of the current month’s derivatives expiry on Thursday,” said Mr Sunil Pachisia, Vice-President of Pratibhuti Viniyog. Mr Pachisia expects the market to gain strength on short-covering later in the week. On the NSE, the 50-stock S&P CNX Nifty fell 26.15 points, or 0.5 per cent, to close at 4,970.90.

BL

10)Thinksoft Global Services, an IT solutions provider, closed with the highest premium among the new listings so far in the current financial year with its stocks closing at Rs 164.30 on the BSE on Monday, up 31.44 per cent against the issue price of Rs 125.

BS

11)Extended trading hours on equity exchanges may lead to a rise in trading volume by 20-25 per cent, according to a National Stock Exchange(NSE) top official. “Based on the experience of other countries, I can say that the trading volume of the stock market may rise 20-25 per cent when these extended timings are implemented,” said Ravi Narain, managing director and chief executive officer, NSE, on the sidelines the launch of a point of presence in Rajkot.

BS

BONUS & RIGHTS ISSUE

 12)The board of directors of the Ahmedabad-based Adani Enterprises Ltd(AEL) are set to meet on October 30, 2009, in order to consider the issue of bonus shares as well as right shares subject to the approval of the shareholders. If approved by the board, this will be the third bonus from Adani Enterprises.

BS

CORPORATE SCORE

 13)Tata Motors on Monday said its profit after tax for the quarter ended September 30 more than doubled to Rs 729.14 crore compared to Rs 346.99 crore in Q2 of FY2008-09 on the back of better operating margins, volume recovery and cost reduction efforts. The better-than-expected results are on a standalone basis, excluding the financials of Jaguar Land Rover(JLR), Tata Motors’ loss-making luxury car unit.

FE

14)India’s biggest drug maker, Ranbaxy Laboratories, has posted a net profit of Rs 116.6 crore for its third quarter ended September, against a net loss of Rs 394.5 crore in the same period last year, which had been largely attributed to mark-to-market exchange losses.

BS

15)Pharma major Lupin has clocked a 39 per cent jump in its net profit at Rs 160.3 crore for the second quarter ended September 30, as against Rs 115.6 crore in the year-ago period.

BS

COMMODITIES

16)Gold prices rose back above $1,055 an ounce in Europe on Monday as the dollar’s slide to 14-month lows against the euro supported sentiment, but weaker physical demand and easing oil prices capped gains.

BL

17)GOLD prices today fell by Rs 40 to Rs 16,190 per 10 gram in the bullion market in New Delhi as traders and retailers refrained from buying the metal at existing higher levels amid weak global cues. Meanwhile, silver lost Rs 50 at Rs 27,500 per kg. Marketmen said slump in demand at existing higher levels on ending of festival season mainly led to the fall in both gold and silver prices.

ET

18)SPURRED by the increasing trade enquiries from the major metro- markets, domestic pepper has turned hot. Prices have registered a sharp increase in the last few days supported by domestic demand.

ET

REAL ESTATE

19)Bucking the national trend, realtors in south India appear to be in no mood to raise prices. A cross section of leading construction firms which FE contacted say after the lull, demand has just started picking up and they want to cash in by pushing up the volume. “We cannot afford to drive away customers when the demand is there, said T Chitty Babu, chairman and CEO, Akshaya Pvt Ltd, one of the key realty players in Chennai.

FE

COMMUNICATIONS

20)Tata Teleservices has beaten its larger rivals in subscriber additions for the second month in a row in September riding on the back of its breakaway tariff schemes, even as competitors dismissed the strategy as unsustainable. In the festive season, when sales for telecom companies is at its highest, Bharti Airtel, Vodafone Essar and Reliance Communications have recorded a drop in monthly additions, while Tata Teleservices managed to clock a positive growth.

ET

INFORMATION TECHNOLOGY

21)INFOSYS Technologies, which counts Bank of America, Royal Bank of Scotland and ABN Amro among its top customers, sees more opportunities emerge as these banks merge their business and technology systems in order to consolidate their operations and integrate better with the acquired entities.

ET

22)HCL Infosystems, the domestic business subsidiary of the $5 billion IT group controlled by billionaire Shiv Nadar, has emerged as the lowest bidder for providing computer hardware and software solutions to Bharat Sanchar Nigam’s western operations, the company’s third such win this year.

ET

23)THE Mahindra group, the new owner of Satyam Computers and the largest shareholder in Tech Mahindra, is set to merge the two companies after June next year to transform the combined entity into an Indian in- formation and communication technology power-house.

ET

24)After rain and sunshine, Mahindra Satyam seems to be back on the roads of confidence. The company has joined hands with the global consultancy firm, Bain & Company, to bring back a dedicated project team for roping in new clients. The company lost over 100 customers, after its founder B Ramalinga Raju committed a Rs 7,000 crore fraud, and is now left with over 400 customers.

FE

INTERNATIONAL

25)ING Group NV, one of the world’s largest financial services companies, announced plans Monday to sell or list its insurance and investment management arms and to issue euro 7.5 billion($11.3 billion) in new shares to repay state aid and bolster its finances.

FE

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

Headlines (23 Oct 2009)

Date: 23 October 2009

 Thought for the day

“The greatest thing in life is to keep your mind young.”

-Henry Ford

GENERAL

1)The armed forces are now gearing up to storm the final frontier of space. India’s first dedicated military satellite, a naval communications one, will finally be up and running in the sky  early in 2010.

TOI

ECONOMY

2)THE annual rate of inflation, as measured by the Wholesale Price Index(WPI), touched a twenty-week high of 1.21% for the week ended October 10, a release by the government on Thursday showed. Inflation was 0.92% the week before. The rapidly increasing inflation should not worry the Reserve Bank of India(RBI) just before the upcoming monetary policy review on October 27. The apex bank has already built-in a year-end 5% inflation in its policy  and is unlikely to tinker with things unless there is some  dramatic change.

ET

3)The Planning Commission expects the economy to stage a full recovery by next fiscal and register a growth of 8%. It also expects last year’s final GDP number to be a tad higher than the revised estimate of 6.7%.

FE

CORPORATE / INDUSTRY

4)THE world’s largest pharma company Pfizer is leaving no stones  unturned to pursue inorganic growth in India. The American giant has sent feelers or directly approached several big and mid-sized pharma companies for a stake buy or business alliance. The Indian companies that have been on the American company’s radar include Zydus Cadila, Emcure, Intas Pharma and Mankind Pharma, but most  of the Indian companies have not reciprocated, people familiar with the matter said.

ET

5)Power transmission company KEC International said it has bagged orders aggregating to Rs 470 crore from West Asia and Africa to design, engineer and supply power distribution equipment. The company has bagged orders from clients in Saudi Arabia and Chad for construction and supply of power distribution equipment.

BS

MONEY & BANKING

6)A strong dollar overseas coupled with weak domestic bourses pulled the rupee down on Thursday to its lowest in two weeks at 46.74/75 against the US dollar, a fall of 26 paise over the previous week.

BL

7)The recovery of Indian economy may be more than expected but the credit offtake situation is heading towards bad to worse with every passing fornight. The loan growth in the banking industry has dipped  10.75% for the year ending October 9,2009, as against 12.62% for year ending 25 September 2009, showed the data released by the Reserve Bank of India(RBI), on Thursday.

FE

8)SPURRED by an over 200% growth in non-interest income, Kolkata- based Allahabad Bank on Thursday reported an eight-fold jump in  net profit at Rs 333.59 crore for the quarter ended September 2009 (second quarter) from a modest Rs 41.68 crore in the earlier cor- responding period.

ET

9)The Credit offtake in banks is likely to gather momentum during the second half of the current fiscal year. It will be much better than what the banking sector witnessed during the first six months of this year, said OP Bhatt, chairman, State Bank of India(SBI).

FE

MARKETS

10)With the country’s equity indices continuing their downward journey for the third consecutive session following weak cues from global  markets, coupled with profit booking, overseas investors have been net sellers during the past two days. However, domestic institutional investors(DIIs), especially insurance companies, see this as a  buying opportunity and, therefore, could arrest a strong downslide. Foreign institutional investors(FIIs) were selling, as valuations had shot up and there would be profit-booking at these levels, feel dealers. The 30-share Sensex of BSE lost 219.43 points or 1.29% to end below the 17,000-mark at 16,789.74 points. The broader Nifty of the NSE tanked 75 points or 1.48% to close the day at 4,988.60 points.

FE

11)Marico Shares rose 3.78 per cent to close the day at Rs 101.65 on hopes of robust sales and earnings in the July-September quarter due to higher volumes and lower raw material costs. The company will declare second-quarter results in October. The stock was the biggest gainer in BSE’s ‘A’ group and closed at an all-time high.

BS

IPO

12)The initial public offering(IPO) of Den Networks, through which the cable company is planning to garner around Rs 400 crore, will hit the market on October 28. Den Networks’ IPO of up to two crore equity shares in a price band of Rs 195-205 will start on October 28 and closes on October 30, 2009, a company release said.

ET

MUTUAL FUNDS

 13)DESPITE a dip in new collections and a lacklustre NFO market, the mutual fund industry is drawing new players. Enam, the investment banking and brokerage group controlled by Vallabh Bhansali  and Nimesh Shah, is planning to set up a fund house. Recently, Enam Asset Management has applied for an AMC licence with capital markets regulator Sebi. With this, Enam joins the queue of as many as 17 AMCs, local as well as foreign, awaiting Sebi’s green signal.

ET

CORPORATE SCORE

 14)Engineering and construction major Larsen & Toubro(L&T) posted a 26% rise in net profit at Rs 580.40 crore for the second quarter of FY10, compared with Rs 460.26 crore a year earlier. This was aided by exceptional gains of Rs 107.84 crore. The company recorded a lower-than-expected 2.5% increase in total income, at Rs 7,918.84  crore for the quarter, compared with Rs 7,725.07 crore a year earlier.

FE

15)Asian Paints’ net profit grew 108 per cent to Rs 254.32 crore for the quarter ended September 30, against Rs 121.71 crore for the  year-ago period. Total income has increased to Rs 1,472.91 crore from Rs 1,186.09 crore, a growth of 24 per cent.

BL

16)Bangalore-based biotech major Biocon has more than tripled its net profit to Rs 76 crore in the July-September quarter compared with Rs 25 crore in the same period last year. Total revenue during the  period rose 31 per cent to Rs 581 crore, according to the consoli- dated results announced today.

BS

COMMODITIES

 17)Leading commodity exchange MCX has received market regulator FMC’s approval for launching futures trading in imported thermal coal and is likely to commence business next year. The Forward Markets Commission(FMC) has approved imported thermal coal contracts for launch between January and June 2010, an official FMC statement said.

BL

18)Pure gold prices rallied to a historic peak on the bullion market in Mumbai today even as standard gold hit an all-time high figure on persistent buying by stockists. Standard gold(99.5 purity) shot up by Rs 115 for 10 gm to Rs 16,035. Pure gold(99.9 purity) surged to Rs 16,115. Silver ready(.999 fineness) too strengthened by Rs 205 a kg to Rs 27,645.

BL

COMMUNICATIONS

 19)Not content with its joint bid for Kuwait-listed Zain Telecom, state- owned Bharat Sanchar Nigam Ltd(BSNL) and Mahanagar Telephone Nigam Ltd(MTNL) are planning to set up a special purpose vehicle (SPV) with Delhi-based Vavasi group to participate in a joint venture for Russian and western European telecom operations.

BS

INFORMATION TECHNOLOGY

 20)Microsoft Corp on Thursday finally launched the long-awaited operating system(OS) Windows 7. It will replace the failed OS Vista and the earlier version Windows XP, that still dominates most of the one-billion-plus global desktops.

ET

21)INDIAN outsourcing vendors are gearing up for significant business opportunities from the launch of Microsoft’s Windows 7(Win 7) in the areas of IT consulting, systems integration and infrastructure management as their clients look at migrate from their old operating systems(OS) to Win 7. According to industry estimates, an overwhelming 80% of systems still run on Microsoft’s older OS, Windows XP, which was released eight years ago, making a strong case for upgradation.

ET

22)Wipro Ltd has formed a joint venture with Delhi International Air- port (P) Ltd to offer IT services to airports across the country and abroad. Wipro will own 74 per cent stake in the joint venture, Wipro Airport IT Services Ltd, in which DIAL will hold the rest.

BL

INTERNATIONAL

 23)Oil slipped below $81 on Thursday as a stronger dollar encouraged investors to lock into profits from a 12-month high hit the previous day. US crude oil futures fell 68 cents to $80.69 a barrel by 1359 GMT, having dipped as low as $79.90.

BS

24)China’s economy expanded at the fastest pace in a year, as stimulus spending and record lending growth helped the nation lead the world out of recession. GDP rose 8.9% in the third quarter from a year earlier.

FE

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

 Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

Headlines (22-10-2009)

Date: 22 October 2009

 Thought for the day

“No iron chain, or outward force of any kind, can ever compel the soul of a person to believe or to disbelieve.”

-Thomas Carlyle

GENERAL

1)Counting of votes in Assembly elections in Maharashtra, Haryana and Arunachal Pradesh will be taken up on Thursday and the 10-day long suspense over who will form the next government is expected to be over in a few hours later.

Indian Express

ECONOMY

2)INDIA’S economy is expected to grow at 6.5% in the current fiscal, an improvement over the earlier official estimate of 6% plus growth, as robust industrial growth in the second half of the current fiscal is expected to more than make up for the monsoon-hit farm sector, according to an assessment of the economy released on Tuesday by the country’s premier thinktank – the Prime Minister’s Economic Advisory Council(EAC).

ET

3)Interest rates are likely to remain soft as FM Pranab Mukherjee on Wednesday ruled out any immediate plans to withdraw the fiscal stimulus. Prime Minister Economic Advisory Council(PMEAC) chairman C Rangarajan also indicated that the current easy monetary policy will continue till March 2010.

TOI

4)In a first government-industry synergy of efforts, a high-level trade delegation is making a two-phase visit to Europe, covering five major countries in a move to attract $6 billion of foreign direct investment(FDI) by 2015 into the country’s textile sector.

BL

CORPORATE / INDUSTRY

5)ESS Dee Aluminium, which recently acquired India Foils, is close to making its first major global acquisition in Europe. The deal is likely to be sealed within the next one or two months. As a precursor to the deal, Ess Dee is preparing to get listed on the London Stock Exchange.

ET

6)Pharma group Ind-Swift on Wednesday said it is looking for a string of acquisitions worth Rs 350 crore in Europe, the West Asia and Latin America to strengthen marketing and distribution network in the regions. The group is also looking at acquiring manufacturing assets within India in the range of RS 10-20 crore to overcome capacity constraints.

FE

7)Areva T&D India has been awarded a Rs 900-crore EPC (engineering, procurement and construction) contract by the Maharashtra State Electricity Transmission Company for turnkey design and construction of 36 sub-stations with 132 kv AND 220 kv configurations.

BL

MONEY & BANKING

8)THE rupee fell to its lowest in more than a week on Wednesday, as a fall in local share prices turned sentiment cautious about the direction of fund flows and some banks bought dollars cheaper to arbitrage offshore. The partially convertible rupee ended at 46.485/495 per dollar, off an early low of 46.52, its weakest since October 12 and 0.8% below its Tuesday’s close of 46.11/12.

ET

9)Private sector lender, Yes Bank has reported a net profit of Rs 111.71 crore for the second quarter ended September 30,2009 as against Rs 63.6 crore during the corresponding period last year, showing a growth of 75.6%.

FE

MARKETS

10)Extending the losses for the second day in succession, the Sensex on Wednesday nosedived by over 200 points on profit-selling in banking and auto segments amid weak Asian cues. The Sensex remained weak for most part of the day and closed lower by 213.84 points at 17,009.17. Similarly, National Stock Exchange index Nifty dropped by 50.85 points to 5,063.60. Marketmen said a weak trend in the Asian region influenced trading sentiment.

ET

11)As the markets and the economy have started booming again, foreign investors are back in business. Nowadays, their attention is primarily centering around the Indian exchanges such as the National Stock Exchange(NSE), National Commodity & Derivatives Exchange Ltd(NCDEX) and Multi Commodity Exchange Ltd(MCX).

FE

MUTUAL FUNDS

12)The domestic mutual fund industry has appreciated the Security and Exchange Board of India’s(Sebi’s) move on clearing and settlement of trades in corporate bonds through clearing corporations. Fund houses believe the step will bring transparency in the bond market and enhance liquidity.

BS

CORPORATE SCORE

13)Riding on strong sales during the current festive season coupled with new launches, the country’s largest two-wheeler manufacturer Hero Honda on Wednesday posted its highest-ever net profit, up 95% at Rs 597.14 crore for the quarter ending September 30 against the same period last year. This is the second consecutive quarter when the companies’ sales have crossed the million unit mark. During the quarter, the company’s total revenues recorded a growth of 26.8% at Rs 4059.44 crore against Rs 3202.05 crore in the corresponding period last fiscal.

FE

14)INFRASTRUCTURE company Jaiprakash Associates(JAL) on Wednesday reported a more than four-times jump in net profit to Rs 870 crore for the September quarter on treasury share sale, even as it announced that it would issue one bonus equity share for every two shares held in the company. The company grossed a profit of Rs 942 crore on sale of treasury shares which helped the company clock a net profit of Rs 870 crore, as against Rs 203 crore in the year-ago quarter.

ET

COMMODITIES

15)A JUMP in traded values of agri products, energy and base metals helped commodity exchanges in India record a 30% year-on-year growth in turnover at Rs 33.63 lakh crore in the first-half of the fiscal, latest data from market regulator Forward Markets Commission (FMC) on 21 commexes, including three national level bourses, show. The increase in agri traded values, by 61% to Rs 5.26 lakh crore, has enabled exchanges such as National Commodity & Derivatives Ex- change(NCDEX) and Ahmedabad-based National Multi Commodity Exchange(NMCE) increase their average daily turnover. NCDEX’s daily turnover has gone up from Rs 2048 crore in the first half of FY09 to Rs 2621 crore in H1 FY10, while NMCE has witnessed spectacular 518% jump at Rs 1,280.5 crore over the same period. Exchange officials attributed the jump in agri volumes to the re- listing of four commodities – potato, soyaoil, rubber and chana.

ET

16)High prices seem not a deterent for customers when it comes to buying gold, particularly on auspicious occasion such as Diwali and Dhanteras. Despite high prices, gold sales across the country during the Diwali week ended October 18 were marginally higher by six per cent at 56 tonnes against 53 tonnes during the same period a year ago, according to the World Gold Council, an industry association of the world’s leading gold mining companies.

BL

17)The country’s largest commodity exchange, MCX, on Wednesday launched futures contracts in four farm commodities – wheat, chana,guarseed and turmeric. The turmeric contract is available for November delivery, chana for January 2010, guarseed and wheat for February 2010 delivery, the exchange said in a circular.

FE

18)Gold prices firmed up further on the bullion market in Mumbai on renewed stockists demand. Standard gold(99.5 purity) rose by Rs 30 for 10 grams to Rs 15,920. Pure gold(99.9 purity) increased Rs 55 for 10 grams to Rs 16,000. Silver ready(.999 fineness) dropped by Rs 190 a kg to Rs 27,440.

BL

COMMUNICATIONS

19)With an estimated Rs 30,000 crore of revenue at stake to bridge a yawning fiscal deficit, Finance Minister Pranab Mukherjee has categorically told Communications Minister A Raja that auctions for licences for third-generation or 3G telecom services cannot spill over to the next calendar year under any circumstances.

BS

INFORMATION TECHNOLOGY

20)IT services provider Mahindra Satyam, formerly Satyam Computer, has secured contracts valued at Arab Emirates Dirhams 30 million (Rs 37.59 crore) in the Middle East and North Africa(MENA) markets in the second quarter of FY09-10. It expects to double its business in this region in the next 18-24 months, leveraging on the growing demand within the government, banking, telecom and real estate sectors, the company said on Wednesday.

ET

21)Software giant Microsoft will formerly launch its much touted operating system(OS) – Windows 7 – in India today. The company is on a good wicket in the country, say analysts, with a nearly 90 per cent market share comprising XP(primarily) and Vista users.

BS

INTERNATIONAL

22)Crude oil futures rose after a US Government report showed a bigger-than-forecast decline in supplies of gasoline. Crude oil for December delivery rose 52 cents, or 0.7 per cent, to $79.64 a barrel at 10:37 a.m. on the New York Mercantile Exchange.

BL

23)Yahoo Inc beat Wall Street’s profit and sales expectations as spending by advertisers showed signs of life in the third quater and as months of cost-cutting and restructuring boosted the Internet company’s bottom line. Net earnings was $186 million, or 13 cents a share, in the third quarter, up from $54.3 million, or 4 cents per share, in the year-earlier quarter.

FE

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com